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Money management tips to help you survive the pandemic

Money management tips to help you survive the pandemic

This pandemic has worsened our pre-existing financial vulnerabilities. With millions of jobs lost or earnings reduced, there is only one question left in mind – how to bounce back without enough money at hand?

The whole world is truly living in unusual times. The unprecedented lock-downs and quarantines, volatile markets, and economic recessions brought about by this pandemic are making our lives scary and stressful every single day. While we take care of our health to prevent the spread of the Covid-19 virus, it is also important to prepare and readjust our personal finances so that we are on a solid foundation whatever happens in the near future.

Take a look at some of the money management tips that will help you while you are facing uncertainty during this pandemic.

Enhance emergency fund.
The global economy is badly hit by the coronavirus pandemic. The recent volatility could lead to long-term repercussions thus, it makes sense to increase your emergency fund. Ideally, your emergency fund should be worth at least 6 months of your expenses, but in trying times like this, it should be increased further in order for you to survive daily struggles. Your emergency fund is your rescue if any loss of income arises. Your emergency fund is also your fall back when your health insurance can’t cover your hospitalization or check-ups. An adequate contingency fund will make you independent from borrowed funds and will put you in a more secure financial situation amidst all the challenges.

Set your priorities on budgeting and expenses.
Learn to limit your non-essential expenses so you would be able to face the economic crisis brought about by the pandemic. If the situation worsens, you need adequate savings at hand. Review your budget now and list down shopping priorities. Remember that for you to be able to live decently despite the pandemic, learn to prioritize the needs before wants.

Review your investments
This pandemic is a perfect timing to deal with your investments sensibly and realistically. One way is to rebalance your portfolio. You may also choose to slightly increase your investments to counter the impact of market volatility. Investing during the pandemic is complicated but necessary, so if you’re in doubt, consult your financial advisor.

If you want, you can also assess your savings and investments via a savings calculator. This calculator helps determine the future value of a monthly investment at various compounding intervals.

It’s easy to use. Just enter the beginning balance, the amount you plan to deposit monthly, the interest rate you expect to earn, and the number of years you expect to continue making monthly deposits. After filling up, click the “Calculate” button.

Bear in mind to avoid panic amidst situations such as this one. Instead, let’s ensure that we follow the health protocols from the authorities, such as those concerning hygiene and social distancing. We should stay calm and focused while making necessary preparations to bolster our personal finances.

It will never be easy to adapt to the new normal if a lot of people are financially broke, but if we would arm ourselves with the proper financial mindset, we will never find this precarious situation hard to deal with and it is not impossible to start all over again, soon.

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